Macroeconomics Answers

. It is sometimes argued that economic growth that is "too rapid" will be associated with inflation. Use the Aggregate Demand and Aggregate Supply model to show and explain how this statement might be true and which shock is assumed to be hitting the economy?

Inflation is unexpectedly higher than anyone anticipated. In this scenario would you rather

be a lender or a borrower?

Zimmerland has following data is known

Nominal interest rates in 2015 = 2.5 %

CP|2015 = 165

CP|2014 = 150

What is the real interest rate in 2015?

Supposed the disposable income ranges from 1,110,000 to 1,290,000 and it increases by 30,000 per year. Mpc = .80

When disposable income is 1,000,000 what is the level of consumption is equal to?

firms that issue cards?

Supposed the disposable income ranges from 1,110,000 to 1,290,000 and it increases by 30,000 per year. Mpc = .80

When disposable income is 1,000,000 what is the level of consumption is equal to?

Assume that agriculture prices fall and the farming sector faces a mild recession. The demand for the small tractors drops to: P = 26,000 – Q. 

Suppose the recession is only temporary, and demand will recover soon. What output adjustment should the firm make during the recession?

The Nottinghamshire Research Observatory in England calculated that students who attend Nottingham Technical University spend about £2,760 each in the local economy for a total of £50.45 million. In total, the impact of their spending on the local economy is £63 million. “University Brings in £250m to Economy,” Nottingham Evening Post, November 4, 2004, p. 37. Calculate the size of the student spending multiplier

Suppose the price level in a particular economy equals 1.3 and that the quantity of real GDP demanded at that price level is $1,200. An increase of 0.1 point in the price level reduces the quantity of real GDP demanded by $220, and a reduction of 0.1 point would produce an increase in the quantity of real GDP demanded of $220. Draw the aggregate demand curve and show the price level and quantity of real GDP demanded at three points

According to Alaskan state economist Mark Edwards, the multiplier effect of Alaska’s trade with Japan is such that for every $1 billion exported from Alaska to Japan another $600million is added to the state’s economy.Matt Volz, “Trade Officials Hopeful for JapaneseRecovery,”Associated Press and Local Wire June 22, 2004, BC cycle.Calculate the size of the export multiplier